Thursday, May 08, 2014

The Gold Price Held its Own Today, Down $1.20 at $1,287.70

8-May-14PriceChange% Change
Gold Price, $/oz1,287.70-1.20-0.09%
Silver Price, $/oz19.09-0.20-1.06%
Gold/Silver Ratio67.4240.6510.97%
Silver/Gold Ratio0.0148-0.0001-0.96%
Platinum Price1,437.103.300.23%
Palladium Price804.207.350.92%
S&P 5001,882.444.230.23%
Dow in GOLD $s266.441.450.55%
Dow in GOLD oz12.890.070.55%
Dow in SILVER oz869.0313.061.53%
US Dollar Index79.370.130.17%

The GOLD PRICE held its own today, down $1.20 at $1,287.70 while the SILVER PRICE lost 20.4 cents to end at 1909.4c. Both are calm and subdued today, but the pressure is on. They must stand fast here or suffer another downward spike.

I have to drive up to Paris (Tennessee, not France) to speak at 6:45 to the Volunteers for Freedom Tea Party meeting at the Paris Civic Center, 650 Volunteer Drive on "Reviving Local Economies."

The premiums on US $20 gold pieces have collapsed in the past two months. (Premium is the amount you pay over the coin's melt or gold value.) Usually I strongly DISrecommend these coins, because their premiums are too high and fated to disappear as the bull market progresses. Charts of the last 12 years plainly witness this long term premium decline.

However, their premium still varies up and down, and right now, it's down. Purely as a way to buy gold bullion, the US$20s are probably the most liquid form of gold in the US. They were minted before 1935, and whoever sees them falls in love with them. So when we can buy them at LOW premiums, I don't object to them. Right now they cost about what you'd pay for 1/10 American Eagles.

With the gold price at $1,290 the $20 Liberty (minted before 1908) in Extremely Fine grade would cost $1,402.50, a 12.4% premium over its 0.9675 troy oz gold content. At the same GOLD PRICE, the $20 St. Gaudens type (minted 1908-1934) in About Uncirculated grade would cost $1,423.25 or 14% over melt. These prices include a 3.5% commission over wholesale, so if you are entitled to a lower commission from us, they would cost even less.

I am not pushing these coins since even at these premiums they are a bit pricier than I like, but if you ever want to own U.S. $20 golds, this would be the time to buy them while their premiums are low.

After heart surgeries in 2008 and 2012, my wife Susan is again having heart problems. In the past y'all have been kind and generous enough to pray for her, and I find myself a beggar again. Would y'all please pray for Susan's healing? I will be most grateful.

And I almost forgot: she also has to have a cataract removed (second time) tomorrow morning. Please add that to your prayers, too.

God willing, I will return tomorrow.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.